The Cost Of Gross Domestic Product Essay
Gross Domestic Product is the final value of all goods and services produced in the country in one year.
In 2004 the GDP for the United States was 12 trillion dollars.
66% of the GDP was spent on consumers goods and services.
Income from Work
Most of the income people receive in their lifetime will come from work you do for others, (or if you own a business, the work you do for yourself).
In return for people’s labor they receive a salary or wage.
Wage is earnings paid by the hour or unit of production.
Salary is earnings paid weekly, monthly, or on a yearly basis.
How much you earn depends on the nature of your job, skills and education, etc.
The median monthly earnings is the middle amount of earnings in the full range of earnings for a particular job category.
Income from Wealth
Wealth is the value of things you own.
Net Worth refers to an individual’s wealth after debts and other obligations have been subtracted.
Rent is the use payment for the use of someone else’s property.
Interest is income earned from allowing someone else to use your financial capital.
Rent and interest are two forms of income that can be earned from wealth.
Factors That Influence Wealth Accumulation
Accumulated wealth is the initial money and/or assets that you add to your initial wealth.
If you do not spend all the money you earn, you can set some of it aside and put it to work to make your wealth grow.
Disposable income us the money you take home after taxes are paid.